Moving Average Support and Resistance Gold Trading Levels
Moving Averages can be used as points of support & resistance on xauusd charts.
When xauusd price reaches the moving average, the Moving Average level can act as a point of support or resistance for the xauusd price.
Buy Gold Signal
If xauusd price is on an upward gold trend & starts to retrace, then most traders might wait to buy at a better xauusd price when the price hits a support level. Traders will sometimes use the Moving Average to determine the support level.
A buy signal is generated when price hits the Moving Average, turns and starts moving in the upward trend direction. The gold signal is confirmed when price closes above the Moving Average. Because many traders use the moving averages to generate xauusd trading signals, xauusd price will normally react to these levels.
A stoploss should be set just below the Moving Average gold Indicator. Ideally it should be set a few pips below the previous low.
Buy Gold Signal - How to Trade Gold with Moving Average Strategy
Sell XAUUSD Signal
If the xauusd price is on a downward gold trend & starts to retrace, then most traders might wait to sell at a better xauusd price when the price hits a resistance level. Traders will sometimes use the Moving Average to determine the resistance level.
A sell signal is generated when price hits the Moving Average, turns and starts moving in the downward gold trend direction. The gold signal is confirmed when price closes below the Moving Average. Because many traders use the moving averages to generate xauusd trading signals, xauusd price will normally react to these levels.
A stoploss should be set just above the gold moving average indicator. Ideally it should be set a few pips above the previous high.
Sell Gold Signal - How to Trade Gold with Moving Average Strategy
Resistance Level turns Support Level
In Gold Trading - When a resistance level is broken it turns into support & vice versa.
This happens when the fundamentals of a gold trend change and consequently the direction of gold. The direction change is reflected by the moving average gold technical indicator, the direction is confirmed when the resistance zone turns into support level or vice versa (when support level turns into resistance area)
Resistance Level turns Support Level - Moving Average Gold Trading Strategy Examples
